Equity markets continue to trend within a tight range below critical resistance. At the same time, good news continues to emerge but it is more of a sell-the-news event because the news is centered on weakening economic data. A softer than expected JOLT figures suggest a pullback in business spending and hiring that will aid a reduction in inflation. The bad news is that reduced business spending and hiring will also result in soft GDP growth and a weaker consumer.

The S&P 500 is hovering at critical resistance with a catalyst due on Friday. The monthly job growth figures are expected to show sustained labor market health but may give the market what it wants: soft data and a reason for the Fed to cut rates. The risk now is that the market may indeed get what it wants and more, the recession everyone feared would happen but didn't.